Core Viewpoint - FuelCell Energy reported a mixed performance in Q2 2024, with a slight earnings beat but significant year-over-year declines in sales and increasing operating losses [1][2][3]. Financial Performance - FuelCell's Q2 2024 sales were $22.4 million, exceeding analyst expectations of $21.4 million, but represented a 41.5% decline year-over-year [2]. - The company reported a loss of $0.07 per share, which was better than the expected loss of $0.08 per share and an improvement from a loss of $0.09 per share a year ago [1][2]. - Operating losses increased by 15% year-over-year, totaling $41.4 million [2]. Stock and Shareholder Dynamics - The reduction in losses per share was attributed to stock dilution, as FuelCell increased its share count by approximately 11% over the past year, reaching over 452 million shares [2][4]. - Despite the positive market reaction, concerns remain regarding the sustainability of FuelCell's financial health, with cash levels at $260 million and debt exceeding $150 million [3]. Strategic Relationships - FuelCell's CEO highlighted partnerships with major energy companies, including ExxonMobil and Ameresco, and a significant contract with South Korea's Gyeonggi Green Energy for 42 fuel cell modules valued at about $160 million [3]. - Analysts remain skeptical about the profitability of these relationships, with expectations that FuelCell may not achieve profitability before 2029 [3].

FuelCell Energy (NASDAQ:FCEL) stock is in the green despite reporting a 42% revenue drop in its fiscal second-quarter earnings. Revenue tallied in at $22.4 million compared to $38.3 million a year ago. Furthermore, FuelCell remains unprofitable with a net loss of $37.65 million compared to a loss of $33.91 million a year ago. Net loss attributable to common stockholders improved to $32.94 million from $35.10 million.The green hydrogen company’s revenue is composed of four segments: service agreements, gener ...

FuelCell Energy (FCEL) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this fuel cell power plant maker would post a loss of $0.08 per share when it actually produced a loss of $0.05, delivering a surprise of 37.50%.Over the last four quarters, the ...

Financial Performance - Total revenues for the three months ended April 30, 2024, were $22.4 million, a decrease of $15.9 million (42%) from $38.3 million in the same period of the prior year[144]. - Cost of revenues for the three months ended April 30, 2024, was $29.5 million, down $14.9 million (34%) from $44.4 million for the same period in the prior year[144]. - The gross loss for the three months ended April 30, 2024, was $7.1 million, compared to a gross loss of $6.1 million in the same period of the prior year, reflecting an increase of $981,000 (16%) in losses[144]. - Loss from operations for the three months ended April 30, 2024 was $41.4 million, an increase from $35.9 million in the prior year, driven by higher operating expenses[169]. - Net loss attributable to common stockholders was $32.9 million for the three months ended April 30, 2024, compared to $35.1 million in the prior year, with a net loss per common share of $0.07[178]. - Total revenues for the six months ended April 30, 2024, were $39.1 million, a decrease of $36.3 million (48%) from $75.4 million in the same period last year[180]. - Product revenues were $0 for the six months ended April 30, 2024, compared to $9.1 million for the same period in 2023, reflecting a 100% decrease[182]. - Service agreements revenues decreased by $37.1 million (93%) to $3.0 million for the six months ended April 30, 2024, down from $40.1 million in the prior year[185]. - Generation revenues increased by $6.6 million (37%) to $24.6 million for the six months ended April 30, 2024, compared to $18.0 million for the same period in 2023[189]. - Advanced Technologies contract revenues rose to $11.5 million for the six months ended April 30, 2024, an increase of $3.3 million (39%) from $8.3 million in the prior year[197]. - Loss from operations for the six months ended April 30, 2024, was $83.8 million, an increase of $25.5 million from a loss of $58.3 million in the same period last year[200]. - For the six months ended April 30, 2024, net loss attributable to common stockholders was $53.5 million, a slight decrease from $54.5 million in the same period of 2023, with net loss per common share improving from $0.13 to $0.12[208]. Revenue Breakdown - Service agreements revenues for the three months ended April 30, 2024 decreased by $24.8 million (95%) to $1.4 million from $26.2 million for the same period in 2023, primarily due to no module exchanges during the quarter[152]. - Cost of service agreements revenues decreased by $18.8 million (94%) to $1.3 million for the three months ended April 30, 2024, reflecting lower costs as there were no module exchanges[153]. - Gross profit from service agreements revenues was $0.1 million for the three months ended April 30, 2024, down from $6.1 million in the prior year, resulting in a gross margin of 7.5% compared to 23.2%[154]. - Generation revenues increased by $5.7 million (67%) to $14.1 million for the three months ended April 30, 2024, driven by new projects including the Toyota Project and Derby Projects[157]. - Cost of generation revenues rose by $4.3 million (25%) to $21.4 million for the three months ended April 30, 2024, due to the increased size of the installed fleet[158]. Expenses - Administrative and selling expenses increased to $17.7 million for the three months ended April 30, 2024, up from $15.1 million in the prior year, primarily due to increased compensation expenses[167]. - Research and development expenses rose to $16.6 million for the three months ended April 30, 2024, compared to $14.7 million in the prior year, reflecting increased spending on commercial development efforts[168]. - Administrative and selling expenses increased to $34.1 million for the six months ended April 30, 2024, up from $30.1 million in the prior year, primarily due to increased compensation expenses[196]. - Research and development expenses increased to $31.0 million for the six months ended April 30, 2024, compared to $27.4 million in the same period last year, driven by higher spending on ongoing development efforts[199]. Cash and Financing - As of April 30, 2024, unrestricted cash and cash equivalents totaled $158.8 million, down from $250.0 million as of October 31, 2023[210]. - The company raised approximately $6.3 million in gross proceeds from the sale of 6.5 million shares of common stock at an average price of $0.98 per share between April 10, 2024, and April 30, 2024[213]. - The company completed a tax equity financing transaction with Franklin Park totaling $30.2 million for two fuel cell power plant installations, with $21.1 million received during the six months ended April 30, 2024[215]. - Net cash used in operating activities was $95.4 million for the six months ended April 30, 2024, compared to $88.7 million for the same period in 2023[272]. - Net cash used in investing activities was $27.4 million for the six months ended April 30, 2024, a significant decrease from $111.6 million in the same period in 2023[274]. - Net cash provided by financing activities was $35.2 million during the six months ended April 30, 2024, compared to a net cash outflow of $4.0 million in the same period in 2023[275]. Backlog and Future Projects - Service agreements backlog increased to $145.1 million as of April 30, 2024, up from $73.7 million a year earlier, driven by a 14-year service agreement with Noeul Green Energy valued at approximately $75.6 million[234]. - Generation backlog decreased to $852.9 million as of April 30, 2024, compared to $926.0 million as of April 30, 2023[234]. - Overall backlog increased by approximately 3.8% to $1.06 billion as of April 30, 2024, compared to $1.02 billion a year earlier[236]. - The company is continually assessing various means to accelerate growth, including potential acquisitions and partnerships for geographic or manufacturing expansion[221]. - The company is focused on advancing sustainable clean energy technologies to address critical challenges in energy access and environmental stewardship[135]. Manufacturing and Production - The annualized production rate at the Torrington, CT manufacturing facility increased to approximately 30.9 MW for the three months ended April 30, 2024, compared to 28.7 MW for the same period in the prior year[150]. - Annualized production rate at the Torrington manufacturing facility was approximately 31.8 MW for the six months ended April 30, 2024, down from 33.4 MW for the same period in 2023[242]. - The solid oxide production capacity expansion in Calgary is expected to increase from 4 MW to 40 MW per year of SOEC production by the end of calendar year 2025[253]. - The maximum annualized capacity of the carbonate platform at the Torrington facility is currently 100 MW, with potential expansion to 200 MW with additional investment[253]. - The company plans to add an additional 400 MW of solid oxide manufacturing capacity in the U.S., contingent on market demand[262]. Financial Obligations - The company has a total of $314,130,000 in various financial obligations, including purchase commitments and lease payments[280]. - Total purchase commitments amount to $80,371,000, with $70,751,000 due within one year[280]. - The company has secured term loans totaling $147,143,000, with $17,786,000 due within one year[280]. - Operating lease commitments total $18,530,000, with $1,346,000 due within one year[280]. - The company is required to maintain a debt service coverage ratio of not less than 1.20:1.00, tested every six months[308].

Exhibit 99.1 FuelCell Energy Reports Second Quarter of Fiscal 2024 Results Second Quarter Fiscal 2024 Summary (All comparisons are year-over-year unless otherwise noted) ● Revenue of $22.4 million, compared to $38.3 million ● Gross loss of $(7.1) million compared to $(6.1) million ● Loss from operations of $(41.4) million compared with $(35.9) million ● Net loss per share was $(0.07) compared with $(0.09) DANBURY, Conn., June 10, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ: FCEL) -- a global lead ...

Second Quarter Fiscal 2024 Summary(All comparisons are year-over-year unless otherwise noted) Revenue of $22.4 million, compared to $38.3 millionGross loss of $(7.1) million compared to $(6.1) millionLoss from operations of $(41.4) million compared with $(35.9) millionNet loss per share was $(0.07) compared with $(0.09) DANBURY, Conn., June 10, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ:FCEL) -- a global leader in decarbonizing power and producing hydrogen through our proprietary, state-of-the-a ...

Second Quarter Fiscal 2024 Summary(All comparisons are year-over-year unless otherwise noted) Revenue of $22.4 million, compared to $38.3 millionGross loss of $(7.1) million compared to $(6.1) millionLoss from operations of $(41.4) million compared with $(35.9) millionNet loss per share was $(0.07) compared with $(0.09) DANBURY, Conn., June 10, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ: FCEL) -- a global leader in decarbonizing power and producing hydrogen through our proprietary, state-of-the- ...

Core Insights - FuelCell Energy, Inc. has entered a long-term service agreement with Gyeonggi Green Energy Co., Ltd. to supply 42 upgraded 1.4-megawatt carbonate fuel cell modules, expecting approximately $160 million in revenue over the agreement's term [1][3][4] - The Hwaseong Baran Industrial Complex, the world's largest fuel cell power platform, has a capacity of 58.8 megawatts, providing power to around 135,000 homes and generating about 250 billion kilocalories of hot water annually [2][8] - The agreement supports South Korea's Hydrogen Economy Roadmap, which aims to supply 15 gigawatts of power from fuel cells by 2040, addressing environmental issues such as fine dust pollution [3][4] Company Overview - FuelCell Energy is a global leader in sustainable clean energy technologies, focusing on proprietary fuel cell technology platforms that serve various customers, including businesses and governments [7] - The company is expanding its market share in Korea by establishing long-term service relationships and agreements, contributing to the country's clean energy targets [4][5] - FuelCell Energy's carbonate and solid oxide platforms are versatile, supporting power generation and combined heat and power applications, and are fuel flexible, utilizing various fuels including hydrogen and biogas [5][6] Environmental Impact - The Hwaseong Baran Industrial Complex has a CO2 reduction effect of approximately 220,000 tons and a substitution effect for crude oil imports of about 120,000 tonnes of oil equivalent [8] - FuelCell Energy's technology is deployed across South Korea, producing over 100 megawatts of clean electricity without combustion, aligning with the country's environmental goals [3][4]

DANBURY, Conn. and HWASEONG-SI, Korea, May 28, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq: FCEL) and Gyeonggi Green Energy Co., Ltd. (GGE), today announced that pursuant to a long term service agreement GGE has agreed to purchase 42 1.4-megawatt upgraded carbonate fuel cell modules from FuelCell Energy to replace existing fuel cell modules at the Hwaseong Baran Industrial Complex fuel cell power platform, the world’s largest fuel cell power platform, located in Hwaseong-si. The agreement, which ...

Core Insights - FuelCell Energy (NASDAQ:FCEL) has experienced a significant increase in stock price, attributed to the resurgence of meme trading rather than any specific company news [1] - The high short interest of 21.96% in FuelCell's float has contributed to the stock's upward movement, as investors speculate on potential short squeezes [1][2] Group 1: Stock Performance and Market Sentiment - FCEL stock gained approximately 20% over the past five sessions, indicating potential for further upside speculation [3] - The return of meme stock trading, initiated by social media influencer Keith Gill, has led to increased interest in previously targeted securities, including FCEL [1] Group 2: Short Interest and Trading Dynamics - A short interest above 20% is considered extremely high, suggesting significant pessimism among investors, but also creating opportunities for contrarian trades [2] - Short traders face risks if the stock price rises, as they must buy back shares at a higher price, potentially leading to margin calls and upward pressure on the stock [4] Group 3: Analyst Ratings and Fundamentals - Analysts currently rate FCEL shares as a consensus hold, with no buy ratings issued in the past three months, indicating caution regarding the company's fundamentals [5]